Nigerian Aviation Handling Co. PlcNSENG: NAHCO

Quarter 2 - financial statement for 2025

Jul 30, 2025 at 9:46 AM UTC · Issued by Nigerian Aviation Handling Co. Plc

NIGERIAN AVIATION HANDLING COMPANY PLC

Lagos, Nigeria

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2025

NIGERIAN AVIATION HANDLING COMPANY PLC
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2025
Contents	Page
Corporate Information	3
Consolidated and Separate Statements of Profit or Loss and Other Comprehensive Income	4
Consolidated and Separate Statements of Financial Position	5 to 6
Consolidated Statement of Changes in Equity	7
Separate Statement of Changes in Equity	8
Consolidated and Separate Statements of Cash flows	9 to 10
Nahco Free Float Status	11
Notes to the Consolidated and Separate Financial Statements	12 to 53

NIGERIAN AVIATION HANDLING COMPANY PLC

CORPORATE INFORMATION
RC No.	30954
Tax identification number	00209207-0001
DIRECTORS
Chairman (Non Executive)	Dr. Seinde Oladapo Fadeni
Group Managing Director/CEO	Mr. Indranil Gupta (Indian) Mr. Olumuyiwa Olumekun	(Resigned 31 December 2024) (Appointed 1 January 2025)
Executive Directors	Dr. Peter Olusola Obabori
	Prince Saheed Lasisi
Non-Executive Directors	Mr. Taofeeq Oluwatoyin Salman
	Mr. Tajudeen Moyosola Shobayo Prof. Enyinna Ugwuchi Okpara Mr. Abdulhamid Aliyu
	Rev. Olaiya Victor Abimbola
Independent Non- Executive Directors	Mrs. Abimbola Adunola Adebakin Mrs. Adebisi Oluwayemisi Bakare Mr. Akinwumi Godson Fanimokun	(Appointed 29 April 2024)
Registered Office	NAHCO Aviance House Murtala Muhammed International Airport Ikeja, Lagos
Registrars	Cardinal Stone Registrars Limited 358, Herbert Macaulay Way Yaba, Lagos P. O. Box 9117 Lagos, Nigeria
Company Secretary	Dikko & Mahmoud (Solicitors & Advocates) No 10 Seguela Street, Wuse 2 F.C.T. Abuja
Auditor	Ernst & Young 10th & 13th Floors, UBA House 57 Marina, Lagos.
Bankers	Access Bank Plc Citibank Nigeria Limited Ecobank Plc Fidelity Bank Plc First Bank of Nigeria Limited Globus Bank Limited Guaranty Trust Bank Plc Polaris Bank Limited Stanbic IBTC Bank Plc Union Bank Plc Zenith Bank Plc

NIGERIAN AVIATION HANDLING COMPANY PLC CONSOLIDATED AND SEPERATE STATEMENTS OF PROFIT OR LOSS & OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30 JUNE 2025 Group Company

		2025	2024	2025	2024	2025	2024	2025	2024
		Jan-Jun	Jan-Jun	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Apr-Jun	Apr-Jun
	Notes	N'000	N'000			N'000	N'000

Revenue from contract with customer	5	32,329,639	16,000,938	15,292,650	8,023,371	29,462,514	15,065,678	14,489,115	7,450,693
Operating costs	9a	(13,166,802)	(7,200,884)	(5,584,977)	(3,640,443)	(11,064,581)	(6,765,063)	(5,064,043)	(3,376,325)
Gross profit		19,162,837	8,800,054	9,707,673	4,382,928	18,397,933	8,300,615	9,425,072	4,074,368
Other income	6	254,769	358,287	169,034	329,574	213,817	353,956	128,082	328,036
Administrative expenses	9b	(7,780,348)	(4,026,630)	(4,405,005)	(1,916,272)	(7,438,428)	(3,843,227)	(4,228,390)	(1,815,104)
Expected credit losses	9c	-	-	-	-	-	-		-
Profit from operations		11,637,258	5,131,711	5,471,702	2,796,230	11,173,322	4,811,344	5,324,764	2,587,300
Finance costs	7	(1,111,212)	(427,323)	(554,560)	(345,385)	(1,045,283)	(421,977)	(551,492)	(342,713)
Finance income	7	1,265,707	43,199	1,096,858	28,081	1,254,048	43,199	1,089,151	28,081
Profit before tax		11,791,753	4,747,587	6,014,000	2,478,926	11,382,087	4,432,566	5,862,423	2,272,668
Income tax expense	8(a)	(2,912,263)	(1,413,058)	(1,486,502)	(739,871)	(2,845,521)	(1,354,167)	(1,465,605)	(695,250)
Profit for the year		8,879,490	3,334,529	4,527,498	1,739,055	8,536,566	3,078,399	4,396,818	1,577,418
Other comprehensive income		-	-	-	-	-	-		-
Total comprehensive income for the
year, net of tax		8,879,490	3,334,529	4,527,498	1,739,055	8,536,566	3,078,399	4,396,818	1,577,418
		=========	========	=========	========	=========	========	=========	=========
Profit attributable to:
Equity holders of the parent		8,866,643	3,334,529	4,535,477	1,739,055	8,536,566	3,078,399	4,396,818	1,577,418
Non-controlling interest	26b	12,847	-	(7,979)	-	-	-	-	-
		8,879,490	3,334,529	4,527,498	1,739,055	8,536,566	3,078,399	4,396,818	1,577,418
		=========	========	=========	========	=========	========	=========	=========
Earnings per share:
Basic/diluted earnings per share (Kobo)	10	455	171	232	89	438	158	226	81
		===	===	===	===	===	===	===	===

The accompanying notes form an integral part of these consolidated and separate financial statements

NIGERIAN AVIATION HANDLING COMPANY PLC CONSOLIDATED AND SEPARATE STATEMENTS OF FINANCIAL POSITION AS AT 30 JUNE 2025

		Group					Company
		Jun 2025			Dec 2024	Jun 2025	Dec 2024
	Notes	N'000			N'000	N'000	N'000
Assets
Non-current assets
Property, plant and equipment	11		21,638,477	23,356,880		21,464,058		23,167,123
Intangible assets	14		180,041	191,836		83,891		95,520
Investment property	15		259,279	264,905		259,279		264,905
Right-of-use assets	12&13		569,747	604,259		569,747		604,260
Investment in subsidiaries	16		-	-		241,000		241,000
Total non-current assets			22,647,544	24,417,880		22,617,975		24,372,808
Current assets
Inventories	17		932,181	895,638		932,181		683,130
Trade and other receivables	19		10,969,968	14,028,689		9,435,455		9,979,270
Intercompany receivables	20		-	-		261,799		300,147
Intercompany loan	20b		-	-		197,932		3,408,132
Prepayments	18		6,524,788	1,451,077		5,946,197		1,128,971
Cash and Cash Equivalent	22		3,029,653	6,159,606		982,631		5,090,561
Total current assets			21,456,590	22,535,010		17,756,195		20,590,211
Total assets			44,104,134	46,952,890		40,374,170		44,963,019
			=========	=========		=========		=========
Equity and liabilities
Equity
Share capital	23		974,531	974,531		974,531		974,531
Share premium	24		1,752,336	1,752,336		1,752,336		1,752,336
Retained earnings	26		14,603,836	17,314,624		13,072,857		15,704,422
Total equity attributable to equity
holders of the Company			17,330,703	20,041,491		15,799,724		18,431,289
Non-controlling interests	26b		46,347	33,500		-		-
Total equity			17,377,050	20,074,991		15,799,724		18,431,289
Non-current liabilities
Lease liabilities	27		708,401	1,105,025		708,401		1,105,025
Deferred tax liabilities	8C		477,538	459,848		465,795		465,795
Interest-bearing loan and borrowings	28.2		4,424,275	3,505,781		4,424,275		3,505,781
Total non-current liabilities			5,610,214	5,070,654		5,598,471		5,076,601

NicEnixx cviazion H>HoLiNc couexHv Plc

coHsoLioATED AND SEPARATE STA ENT8 OF FTaxHcfAL POSmaH - continued

A9 AT 30 JUNE 2026

Group Company

Jua zozs oec lezc Jan z026 Oec @2G

Notec

N'099

N'000

tI'000

N'O00

Current lTgbiTRles

Current tax liabilities

3.601,877

s,905,413

3,515,813

5,802,747

Trade and omer paypb#s

14,339,544

14,855,878

13,741,769

13,881,354

Interest-beanng loan and barkings

2B.2

1,848.888

1,821,253

1,708,988

1,731,253

Lease liabillties

27,18g

27,169

Deferred income

1,326,466

197,531

9,405

12,806

21,116,870

21,807,245

18,975.975

21,455,129

26,727,0@

28,877,899

24.574.44

26,531,730

44.104,1$4

46,952,890

40,374,170

44.903,019

The financial statements were approved by the Board of Directors on 29 July 2025 and s+gned on its behalf by:

Mr. Olumuyiwa Olumekun Group Managing Director

FRC/2013/PRO/lODN/00Z/00000003965

Mr. Adeo mi oju Chief Financiel Offlca

FRC/2019/PRO/ICAN/001/00000019815

Tne accompanying notes form an integral pan of these consolidated and separate financial statements

Group	Share capital	Share Retained premium earnings				Total	Non- Controlling Total interest equity
2025	N'000 N'000 N'000					N'000	N'000 N'000
At 1 January 2025	974,531	1,752,336		17,314,624		20,041,491	33,500		20,074,991
Profit for the year	-	-		8,866,643		8,866,643	12,847		8,879,490
Other comprehensive income net of tax	-	-		-		-	-		-
Total comprehensive income for the	-	-		8,866,643		8,866,643	12,847		8,879,490
year, net of tax
Investment by NCI	-		-		-	-		-		-
Dividend paid (Note 26c)	-		-		(11,577,431)	(11,577,431)		-		(11,577,431)
At 30 June 2025	974,531		1,752,336		14,603,836	17,330,703		46,347		17,377,050
	=======		========		=========	=========		======		=========
2024
At 1 January 2024	974,531		1,752,336		9,400,480	12,127,347		-		12,127,347
Profit for the year	-		-		12,864,761	12,864,761		-		12,864,761
Other comprehensive income net of tax	-		-		-	-		-		-
Total comprehensive income for the	-		-		12,864,761	12,864,761		-		12,864,761
year, net of tax
Investment by NCI	-		-		-	-		33,500		33,500
Dividend paid (Note 26c)	-		-		(4,950,617)	(4,950,617)		-		(4,950,617)
At 31 December 2024	974,531		1,752,336		17,314,624	20,041,491		33,500		20,074,991
	=======		========		========	=========		======		=========

The accompanying notes form an integral part of these consolidated and separate financial statements

Company

2025			Share capital N'000	Share premium N'000	Retained earnings N'000	Total N'000
At 1 January 2025			974,531	1,752,336	15,704,422	18,431,289
Profit for the year			-	-	8,536,566	8,536,566
Other comprehensive income net of tax	-	-	-	-	-	-
Total comprehensive income year, net of tax	for	the	-	-	8,536,566	8,536,566
Dividend paid (Note 26c)			-	-	(11,168,131)	(11,168,131)
At 30 June 2025			974,531 =======	1,752,336 ========	13,072,857 =========	15,799,724 ==========
2024			Share capital	Share premium	Retained earnings	Total
			N'000	N'000	N'000	N'000
At 1 January 2024			974,531	1,752,336	8,693,467	11,420,334
Profit for the year			-	-	11,961,572	11,961,572
Other comprehensive income net of tax			-	-	-	-
Total comprehensive income year, net of tax	for	the	-	-	11,961,572	11,961,572
Dividend paid (Note 26c)			-	-	(4,950,617)	(4,950,617)
At 31 December 2024			974,531 =======	1,752,336 ========	15,704,422 ========	18,431,289 =========

The accompanying notes form an integral part of these consolidated and separate financial statements

Group Company

	Notes	2025 N'000	2024 N'000	2025 N'000	2024 N'000
Operating activities
Profit before tax		11,791,753	18,702,142	11,382,087	17,716,194
Adjustments to reconcile profit before
tax to net cash flows:
Depreciation of property, plant and equipment	9d	1,155,638	1,247,522	1,138,681	1,217,092
Depreciation of investment property	9d	5,626	11,251	5,626	11,251
Amortization of intangible asset	9d	11,795	26,044	11,629	25,730
Depreciation of right-of-use asset	9d	34,512	31,939	34,512	48,359
Profit on disposal of property, plant and equipment	6	-	(116)	-	-
Loss on disposal of property, plant and equipment	9b	-	215,840	-	215,840
Bad debt written off	9b	-	19,860	-	-
Expected credit losses on account receivables	9c	-	470,885	-	342,216
Expected credit losses on intercompany	9c	-	-	-	(15,241)
Expected credit losses on intercompany loan	9c	-	-	-	94,238
Expected credit loss on short-term deposit	9c	-	(9,085)	-	(9,085)
Intercompany bad debt written-off	9b	-	-	-	420,760
Property, plant and equipment written off	9b	-	4,022	-	4,022
Deferred rent released to profit or loss	29	(108,130)	(274,394)	(108,130)	(274,394)
Finance cost	7	1,111,213	1,282,420	1,045,283	1,261,986
Finance income	7	(1,265,707)	(145,982)	(1,254,048)	(145,982)
Unrealized/Realized exchange (gain)/loss	9	440,070	1,670,880	483,206	1,670,880
		13,176,770	23,253,228	12,738,846	22,583,866
Working capital adjustments:
(Increase)/Decrease in inventories		(36,543)	(397,495)	(249,051)	(184,987)
(Increase)/Decrease In trade and other receivables		1,671,763	(5,868,006)	(843,143)	(5,432,580)
(Increase)/ Decrease in intercompany receivables		-	-	38,348	(125,398)
(Increase)/Decrease in prepayments		(5,073,711)	3,683,906	(4,817,226)	3,713,090
(Decrease)/Increase in trade and other payables		61,285	3,547,884	(622,791)	3,812,382
(Decrease)/Increase in Interest bearing borrowings		-	-	-	-
		9,799,564	24,219,517	6,244,983	24,366,373
Taxation paid	8(b)	(3,828,846)	(1,781,807)	(3,745,497)	(1,708,737)
Net cash flows from operating activities		5,970,718	22,437,710	2,499,486	22,657,636

The accompanying notes form an integral part of these consolidated and separate financial statements

		Grou	p	Company
		2025	2024	2025	2024
	Notes	N'000	N'000	N'000	N'000
Investing activities
Purchase of property, plant and equipment	11	562,765	(17,281,876)	564,384	(17,174,893)
Acquisition of intangible asset	14	-	(13,825)	-	(11,325)
Investment in subsidiary	16	-	-	-	(36,000)
Proceeds from disposal of property, plant and equipment		-	7,609	-	7,409
Rent received	29	1,237,065	324,738	104,929	220,843
Interest received	7	1,265,707	145,982	1,254,048	145,982
Net cash flows used in investing activities		3,065,537	(16,817,372)	1,923,361	(16,847,984)
Financing activities
Interest paid	28.2.1	(806,450)	(1,021,895)	(790,520)	(1,011,201)
Lease payment	27	(678,556)	(182,744)	(678,556)	(182,744)
Loan received from bank & Subsidiary loan repayment	28.2.1	1,708,988	6,073,246	4,919,189	5,983,246
Loan repayment	28.2.1	(812,759)	(2,296,933)	(812,759)	(2,296,933)
Loan to related party	20b	-	-	-	(292,370)
Dividends paid	26	(11,577,431)	(4,950,617)	(11,168,131)	(4,950,617)
Net cash flows used in financing activities		(12,166,208)	(2,378,943)	(8,530,777)	(2,750,619)
Net increase/ (decrease) in cash and cash equivalent		(3,129,953)	3,241,395	(4,107,930)	3,059,033
Cash and cash equivalents at 1 January		6,160,928	2,919,533	5,090,884	2,031,851
Cash and cash equivalents at 30 June	22	3,030,975	6,160,928	982,954	5,090,884
		========	========	========	========

The accompanying notes form an integral part of these consolidated and separate financial statements

NIGERIAN AVIATION HANDLING COMPANY PLC Shareholding Structure/Free Float Status

Description	30-Jun-25		30-Jun-24
Description	Units	Percentage (In relation to Issued Share Capital)	Units	Percentage (In relation to Issued Share Capital)
Issued Share Capital	1,949,062,500	100%	1,949,062,500	100%
Details of Substantial Shareholdings (5% and above)
[Name(s) of Shareholders]
Godsmart Nigeria Ltd	514,471,500	26.40%	525,278,312	26.95%
White Cowry Industries Limited	168,643,862	8.65%	178,643,862	9.17%
Awhua Resources Limited	138,945,487	7.13%	138,945,487	7.13%
Total Substantial Shareholdings	822,060,849	42.18%	842,867,661	43.25%
Details of Directors Shareholdings (direct and indirect), excluding directors' holding substantial interests
[Name(s) of Directors]
Dr. Seinde Fadeni Oladapo	-	0.00%	-	0.00%
Rev. Victor Abimbola Olaiya	778,210	0.04%	351,110	0.02%
Mr. Indranil Gupta	-	0.00%	-	0.00%
Mrs. Bakare Adebisi Oluwayemisi	38,059	0.00%	38,059	0.00%
Mr. Akinwumi Godson Fanimokun (Direct)	7,031,932	0.36%	7,031,932	0.36%
Mr. Salman Taofeeq Oluwatoyin	-	0.00%	-	0.00%
Mr. Abdulhamid Aliyu	-	0.00%	-	0.00%
Mr. Tajudeen Moyosola Shobayo (Direct)	22,485,768	1.15%	19,508,768	1.00%
Prof. Enyinna Ugwuchi Okpara (Direct)	39,600	0.00%	39,600	0.00%
Dr. Peter Olusola Obabori	1,000,000	0.05%	-	0.00%
Mrs. Abimbola Adunola Adebakin	-	0.00%	-	0.00%
Prince Saheed Lasisi (Direct)	6,101,999	0.31%	6,556,985	0.34%
Total Directors' Shareholdings	37,475,568	1.91%	33,526,454	1.72%
Details of Other Influential shareholdings, if any (E.g. Government, Promoters)
[Name(s) of Entities/ Government]	-	-	-	-
Total of Other Influential Shareholdings	-	-	-	-
Free Float in Unit and Percentage	1,089,526,083	55.91%	1,072,668,385	55.03%
Free Float in Value	₦98,220,776,382.45		₦35,398,056,705

Declaration:

B) NAHCO Plc with a free float percentage of 55.04% as at June 30, 2024 is compliant with The Exchange's free float requirements for companies listed on the Main Board.

A) NAHCO Plc with a free float percentage of 55.90% as at June 30, 2025 is compliant with The Exchange's free float requirements for companies listed on the Main Board.

Note:

* Share Price as at June 30, 2024 ₦33.00

* Share Price as at June 30, 2025 ₦90.15

NIGERIAN AVIATION HANDLING COMPANY PLC NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

Reporting entity
Nigerian Aviation Handling Company PLC ("nahco aviance" or "the Company") is a company domiciled in Nigeria with its registered office at Murtala Muhammed International Airport, Ikeja, Lagos. The consolidated financial statements of the Group for the period ended 30 June 2025 comprise the Company and its subsidiaries (together referred to as the "Group" and individually as "Group entities"). The group is primarily involved in provision of services including aircraft handling, cargo handling, passenger handling, passenger profiling, crew transportation, energy and power distribution and leasing of ground handling equipment.
Basis of preparation
1. Statement of compliance
  The financial statements have been prepared in accordance with the IFRS Accounting Standards as issued by the International Accounting Standards Board, the provisions of the Companies and Allied Matters Act 2020 and in compliance with the Financial Reporting Council of Nigeria (Amendment) Act, 2023.
  The consolidated and separate financial statements were authorized for issue by the Directors on 29 July 2025.
2. Functional and presentation currency
  These financial statements are presented in the Nigerian Naira, which is the Group's functional currency. Except as indicated, financial
  information presented in Naira has been rounded to the nearest thousands.
3. Basis of measurement
  These financial statements are prepared on the historical cost basis except where fair values are adopted and disclosed in the policy and notes to the consolidated and separate financial statements.
4. Composition of the financial Statement Financial statements consist of :
  1. Consolidated and separate statements of profit or loss and other comprehensive statement
  2. Consolidated and separate statements of the financial position
  3. Consolidated and separate statements of changes in equity
  4. Consolidated and separate statements of cash flows
  5. Notes to the consolidated and separate financial statements
5. Use of estimates and judgments

The preparation of the consolidated and separate financial statements is in conformity with the IFRSs requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

NIGERIAN AVIATION HANDLING COMPANY PLC NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS - Continued

Basis of preparation - Continued (e) Use of estimates and judgments - Continued Judgments
In the process of applying the Group's accounting policies, management has made the following judgments, which have the most
significant effect on the amounts recognised in the financial statements:
Determining the timing of satisfaction of Ground and Cargo Handling Services
Revenue from contract with customers is to be recognized over time because the customer simultaneously receives and consumes the benefits provided by the Company. The fact that another entity would not need to re-perform the service that the Company has provided to date demonstrates that the customer simultaneously receives and consumes the benefits of the Company's performance as it performs.
The company has determined that the input method is the best method in measuring progress of Ground and Cargo Handling
Operating lease commitments - Group as lessor
The group has entered into commercial property leases on its investment property portfolio. The group has determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease term not constituting a major part of the economic life of the commercial property and the present value of the minimum lease payments not amounting to substantially all of the fair value of the commercial property, that it retains all the significant risks and rewards of ownership of these properties and accounts for the contracts as operating leases.
Going concern
The group's management has made an assessment of its ability to continue as a going concern and is satisfied that it has the resources to continue in business for the foreseeable future. Furthermore, the Management is not aware of any material uncertainties that may cast significant doubt upon the Group's ability to continue as a going concern. Therefore, the financial statements continue to be prepared on the going concern basis.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur.
Discount rate used to determine the incremental borrowing rate
The Group cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) as it relates to each specific subsidiary to measure lease liabilities. The IBR is the rate of interest that each entity in the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.
The group estimates the IBR using the following steps:
Step 1: Reference rate: This is generally a government bond reflecting risk-free rate. Repayment profile was considered when aligning the term of the lease with the term for the source of the reference rate.
Step 2: Financing spread adjustment: Use credit spreads from debt with the appropriate term by considering Company's standalone credit rating or similar Company credit rating.
Step 3: Lease specific adjustment: Use of market yield for the leased assets, as an additional data point and to check the overall IBRs calculated.
Re-assessment of useful lives and residual values
The Group carries its PPE at cost less accumulated depreciation and impairment in the consolidated and separate statements of financial position. The annual review of the useful lives and residual value of PPE result in the use of significant management judgements.
Impairment of non-financial assets
Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. The fair value less costs to sell calculation is based on available data from binding sales transactions, conducted at arm's length for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a discounted cash flow model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Group is not yet committed to or significant future investments that will enhance the asset's performance of the CGU being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash inflows and the growth rate used for extrapolation purposes.
The Group recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).
For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.
For debt instruments at fair value through OCI, the Group applies the low credit risk simplification. At every reporting date, the Group evaluates whether the debt instrument is considered to have low credit risk using all reasonable and supportable information that is available without undue cost or effort. In making that evaluation, the Group reassesses the internal credit rating of the debt instrument. In addition, the Group considers that there has been a significant increase in credit risk when contractual payments are more than 30 days past due.
The group considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.
Fair value of financial instruments
When the fair value of financial assets and financial liabilities recorded in the consolidated and separate statements of financial position cannot be derived from active markets, their fair value is determined using valuation techniques including the discounted cash flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. The judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
(e) Use of estimates and judgments - Continued Provision for expected credit losses of trade receivable
The company uses a provision matrix to calculate ECLs for trade receivables. The provision rates are based on days past due for groupings of various customer segments that have similar loss patterns (i.e., by geography, product type, customer type and rating).
The provision matrix is initially based on the Group's historical observed default rates. The company will calibrate the matrix to adjust the historical credit loss experience with forward-looking information. For instance, if forecast economic conditions (i.e., gross domestic product) are expected to deteriorate over the next year which can lead to an increased number of defaults in the manufacturing sector, the historical default rates are adjusted. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analyzed.
The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions. The Group's historical credit loss experience and forecast of economic conditions may also not be representative of customer's actual default in the future.
Taxes
Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The group establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities.
Material accounting policies information
The material accounting policies information set out below have been applied consistently to all periods presented in these financial statements.
1. Basis of Consolidation
  The consolidated and separate financial statements comprise the financial statements of the Group and its subsidiaries as at 30 June 2025. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if, and only if, the Group has:
  - Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee)
  - Exposure, or rights, to variable returns from its involvement with the investee
  - The ability to use its power over the investee to affect its returns
    Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:
  - The contractual arrangement(s) with the other vote holders of the investee
  - Rights arising from other contractual arrangements
  - The group's voting rights and potential voting rights
    The group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.
    Profit or loss and each component of Other Comprehensive Income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group's accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.
    1. Basis of Consolidation - Continued
      A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.
      If the Group loses control over a subsidiary, it derecognizes the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any resultant gain or loss is recognised in profit or loss. Any investment retained is recognized at fair value.
    2. Foreign currency
      Foreign currrency transactions
      Transactions in foreign currencies are translated into the respective functional currencies of Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at each reporting date are retranslated to the functional currency at exchange rates as at that date. The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the beginning of the year, adjusted for effective interest and payments during the year, and the amortised cost in the functional currency translated at the exchange rate at the end of the year. Differences arising on settlement or translation of monetary items are recognised in the profit or loss.
    3. Property, plant and equipment
    Recognition and measurement
    All property, plant and equipment are initially stated in the statement of financial position at cost .
    Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. Items of property, plant and equipment under construction are disclosed as capital work-in-progress. The cost of construction recognized includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, the costs of dismantling and removing the items and restoring the site on which they are located, and borrowing costs on qualifying assets.
    An item of property, plant and equipment is derecognized on disposal or when no future economic benefits are expected from its use or disposal. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and are recognized in profit or loss.
    Subsequent costs
    The cost of replacing part of an item of property or plant is recognised in the carrying amount of the item if it is probable that future economic benefits embodied within the part will flow to the Group and its cost can be measured reliably.
    The carrying amount of the replaced component is derecognised. The costs of the day-to-day servicing of property and equipment are recognised in the profit or loss as incurred.
    Depreciation
    Depreciation is recognised in the profit or loss on a straight-line basis to write down the cost of each asset, to their residual values over the estimated useful lives of each part of an item of property and equipment. Leased assets under finance lease are depreciated over the shorter of the lease term and their useful lives. Items of property, plant and equipment are depreciated from the date that they are installed and are ready for use, or in respect of internally constructed assets, from the date the asset is completed and available for use. Depreciation ceases at the earlier of the date that the asset is derecognised or classified as held for sale in accordance with IFRS 5. A non-current asset or disposal group is not depreciated while it is classified as held for sale.
    1. Property, plant and equipment - Continued
      The estimated useful lives for the current and comparative period are as follows:
      Leasehold land 50 years
      Leasehold building 50 years
      Buildings 50 years
      Computer equipment 3-10 years
      Furniture, and equipment 2-10 years
      Motor vehicles 4- 5 years
      Plant and machinery 6-15 years
      Capital work-in-progress Not depreciated
      Depreciation methods, useful lives and residual values are reviewed at each financial year- end and adjusted if appropriate. The assessment of the useful life during the year, has no significant impact on the financial statements.
      Capital work-in-progress are assets under construction which take substantial period of time before being ready for their intended use. These are recorded at the cost incurred to date less any impairment loss and no depreciation is charged on these amounts. Depreciation commences when the assets are ready for their intended use.
      De-recognition
      An item of property and equipment is derecognised on disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss in the year the asset is derecognised.
    2. Intangible assets
      The group's intangible assets comprise software that are not integral part of the related hardware. The intangible assets have finite useful lives of between ten and thirty years (10-30 years) and are measured at cost less accumulated amortisation and accumulated impairment losses.
      Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognised in profit or loss as incurred.
      Intangible assets acquired separately
      Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each annual reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.
      Derecognition of intangible assets
      An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset are recognised in the profit or loss when the asset is derecognised.
      Amortisation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.
    3. Inventories
      Inventories are shown at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The cost includes direct cost and appropriate overheads and is determined on the first-in first-out method.
    4. Financial Instruments
      1. Financial assets Recognition
        Non-derivative financial instruments- recognition and measurement
        The Group recognizes a financial asset when it becomes a party to the contractual provisions of the instrument. The Group initially recognizes trade and other receivables on the date of transaction. Transaction cost of a financial asset measured at fair value through profit or loss is recognized as profit or loss.
        Trade and other receivables
        A receivable represents the Company's right to an amount of consideration that is unconditional (i.e., only the passage of time is
        required before payment of the consideration is due).
        Classification of non-derivative financial assets
        Classification and measurement model of non-derivative financial assets are summarized as follows. The Group classifies financial assets at initial recognition as financial assets measured at amortized cost, debt instruments measured at fair value through other comprehensive income,
        Initial recognition and measurement
        Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income (OCI), and fair value through profit or loss.
        The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and the Group's business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient are measured at the transaction price.
        In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are 'solely payments of principal and interest (SPPI)' on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model.
        The Group's business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at amortised cost are held within a business model with the objective to hold financial assets in order to collect contractual cash flows while financial assets classified and measured at fair value through OCI are held within a business model with the objective of both holding to collect contractual cash flows and selling.
        Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Group commits to purchase or sell the asset.
        Subsequent measurement
        For purposes of subsequent measurement, financial assets are classified in four categories:
        Financial assets at amortised cost (debt instruments)
        Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)
        Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity
        instruments)
        Financial assets at fair value through profit or loss equity instruments measured at fair value through other comprehensive
        income or financial assets measured at fair value through profit or loss.
        Financial assets measured at amortized cost
        A financial asset that meets both the following condition is classified as a financial asset measured at amortized cost.
        The financial asset is held within the Group's business model whose objective is to hold assets in order to collect contractual
        cash flows.
        The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and
        interest on the principal amount outstanding.
        A financial asset measured at amortized cost is initially recognized at fair value plus transaction cost directly attributable to the asset. After initial recognition, carrying amount of the financial asset measured at amortized cost is determined using the effective interest method, net of impairment loss, if necessary.
        Debt instruments measured at fair value through other comprehensive income
        A debt instrument that meets both the following condition is classified as a financial asset measured at fair value through other comprehensive income.
        The financial asset is held within the Group's business model whose objective is achieved by both collecting contractual cash
        flows and selling financial assets.
        The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and
        interest on the principal amount outstanding.
        A debt instrument measured at fair value through other comprehensive income is recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, the asset is measured at fair value with changes in fair value included as "financial asset at fair value through other comprehensive income" in other comprehensive income. Accumulated gains or losses recognized through other comprehensive income are directly transferred to profit or loss when debt instrument is derecognized.
        Trade and other payables
        Trade and other payables are stated at amortised cost using the effective interest method. Short-duration other payables with no stated interest rate are measured at original invoice amount unless the effect of imputing interest would be significant.
        Derecognition of financial assets
        The Group derecognises a financial asset when the contractual rights to cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred, or has assumed an obligation to pay those cashflows to one or more recipients, subject to certain criteria.
        Any interest in transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability.
        ii. Non-derivative financial liabilities. Recognition and measurement of financial liabilities
        The Group recognizes financial debt when the Group becomes a party to the contractual provisions of the instruments. The measurement of financial debt is explained in (b) Classification of financial liabilities.
2. Classification of financial liabilities
  A financial liability other than those measured at fair value through profit or loss is classified as a financial liability measured at amortized cost. A financial liability at amortized cost is initially measured at fair value less transaction cost directly attributable to the issuance of the financial liability. After initial recognition, the financial liability is measured at amortized cost based on the effective interest rate method.
3. Derecognition of financial liabilities

The Group derecognizes a financial liability when the financial liability is distinguished, i.e. when the contractual obligation is discharged or cancelled or expired.

Impairment of financial asset

The Group recognizes 12-month expected credit loss as loss allowance when there is no significant increase in the credit risk since initial recognition. When there is a significant increase in credit risk since initial recognition, expected credit losses for the remaining life of the financial assets are recognized as loss allowance. Whether credit risk is significantly increased or not is determined based on the changes in default risk. To determine if there is a change in default risk, following factors are considered. However, the Group always measures loss allowance for trade receivables at an amount equal to lifetime expected credit losses.

External credit rating of the financial asset
Downgrade of internal credit rating
and increase in leverage.

Financial assets at amortised cost (debt instruments)

Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognized, modified or impaired.

The Group's financial assets at amortised cost includes trade receivables.

Trade and other receivables

Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost, less allowance for impairment. The carrying amount of trade receivable is reduced through the use of an allowance account. When trade receivables are uncollectible, it is written off as 'administrative expenses' in the profit or loss. Subsequent recoveries of amounts previously written off are included in other operating income.

Cash and short-term deposits

Cash and cash equivalents comprise of cash, bank balances and call deposits with original maturities of three months or less. There is no significant loss of value on conversion.

For the purpose of the consolidated and separate statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Group's cash management.

Share Capital

Ordinary Shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share options are recognised as deductions from equity, net of any tax effects.

Dividend on ordinary shares

Dividends on the Group's ordinary shares are recognised in equity in the period in which they are paid or, if earlier, approved by the Group's shareholders.

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